2018 has been rough on Gold Miners, as they’ve declined a large percentage. The decline has this key ratio testing dual support to start off the week.
This chart looks at the GDXJ/GDX ratio (Junior Miners/Senior Miners) over the past 8-years. If you are bullish miners, you prefer to see this ratio moving higher.
The decline this year has the ratio testing the bottom of its 2-year trading range and rising support of the 2015 lows.
A rally off support at (1) would send a positive message to miners. If the ratio breaks above the top of its trading range and falling resistance at (2), it would send a very positive message to the hard-hit mining sector.